Japanese banks reportedly mulling joint ATMs to cut massive losses

Declining loan demand is squeezing the profits of the country's lenders.

Japan’s three largest lenders are reportedly considering the possibility of joint management and development of ATMs in a bid to boost profitability against the low-interest rate environment engineered by the central bank.

MUFG Bank Ltd., Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. expect demand for ATMs to reduce due to the spread of online banking by cutting down on an estimated 20,000 machines they collectively run in the country, source close to the matter said.

“Falling loan demand and a shift toward lower-risk deposits are pressuring the profitability and growth prospects of banks, and Japan's three megabanks have announced structural overhauls that will result in a reduction of their headcount by 32,000,” a report from Moody’s noted.

The jointly-operated ATM service will enable banks to simplify processes and cut costs. The source added that the lenders may start the phaseout of older ATM machines near train stations.

Banks in the country are battling declining loan demand as the country rapidly ages. As loans for the banking sector are generally tied to nominal GDP growth, the growing preference of older generations for low-risk and risk-free assets have caused a decline in loan to deposit ratios, in effect squeezing profits.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia